Exam 10: Banking Industry: Structure and Competition

During the 1970s and early 1980s, most of the sovereign lending was ________ leading to ________ consequences.

What bonds are commonly called "junk bonds"? Why innovations in computer technology helped the "junk bonds" market?

Which bank became the government's fiscal agent in 1864?

In a ________ banking system, commercial banks engage in securities underwriting, but legal subsidiaries conduct the different activities. Also, banking and insurance are not typically undertaken together in this system.

Why did the interest rate volatility of the 1970s spur financial innovation?

The Glass-Steagall Act, before its repeal in 1999, prohibited commercial banks from ________.

Financial instruments whose payoffs are linked to previously issued securities are called ________.

The primary reason for the recent reduction in the number of financial institutions is ________.

How banks suffered a decline in income advantages on uses of funds (assets) due to financial innovation?

________ is the process of researching and developing profitable new products and services by financial institutions.

In a ________ banking system, commercial banks provide a full range of banking, securities, and insurance services, all within a single legal entity.

The main center of the Eurodollar market is ________.

The agreement to provide a standardized commodity to a buyer on a specific date at a specific future price is ________.

Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to as ________.

The declining cost of computer technology has made ________ a reality.

What country is given credit for the birth of the Eurodollar market?

Experts predict that the future structure of the banking industry will have ________.

The separation of the banking and other financial services industries was known as ________.

The presence of so many commercial banks in the United States is most likely the result of ________.

In the 1950s the interest rate on three-month Treasury bills fluctuated between 1 percent and 5.5 percent; in the 1980s it fluctuated between ________ percent and ________ percent.